ECON 2010 – Recitation Quiz + Worksheet Questions – Flashcards
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Which of the following will not change the demand for movie tickets?
a. A change in the cost of babysitting services.
b. A change in the price of movie tickets.
c. A change in the quality of television programs.
d. A change in the income of moviegoers.
answer
b. A change in the price of movie tickets (movement along the demand curve; no change in the demand curve)
question
If people are willing this year to buy more bottled water at each and every price than they were willing to buy last year, the:
a. Demand for bottled water has increased.
b. Law of demand has been violated.
c. Law of demand has been demonstrated.
d. Cost of living must have risen.
answer
a. Demand for bottled water has increased (At every price level, more is demanded; the curve has shifted right - demand has increased.)
question
Compared to high-income families, the lower-income families consume more of:
a. Complementary goods.
b. Substitute goods.
c. Normal goods.
d. Inferior goods.
answer
d. Inferior goods. (Lower-income families have lower incomes, so they are more likely to consume
inferior goods.)
question
A rise in the price of peanut butter, due to a mold attacking peanut plants, is likely to have which of the following effects on the market for jelly?
a. A rightward shift of the demand curve.
b. A leftward shift of the demand curve.
c. An upward movement along the demand curve.
d. A downward movement along the demand curve.
answer
b. A leftward shift of the demand curve. (Peanut butter and jelly are complements; so when the
price of one goes up, demand for the other goes down since they are consumed together.)
question
A fall in the price of sugar (due, say, to the elimination of the tariffs on foreign sugar) is likely to have which of the following effects on the market for cookies?
a. A rightward shift of the supply curve.
b. A leftward shift of the supply curve.
c. A downward movement along the demand curve.
d. Both a) and c).
answer
d. Both a) and c). (First the supply curve will shift right because suppliers are willing and able to
supply more at ever price; the price of one of their inputs has dropped. Second, since the price of
cookies is now lower, more will be demanded according to the Law of Demand. Draw this for yourself.)
